ECB's Mersch sees no reason to alter rates
"Rates are appropriate, and for the foreseeable future, I have not seen any evidence that would deviate me from this analysis," Mersch said in an interview with financial news agency Bloomberg.
``I am quite open'' on the ECB's interest-rate options, "but I still see one option more clearly than others,'' said Mersch, who is attending the annual meeting of the Bank for International Settlements.
Record oil prices and the euro's 10 percent depreciation against the U.S. dollar so far in 2005 "are mutually offsetting effects", Bloomberg quoted Mersch as saying.
The increase in oil prices ``isn't a relief for the current economic situation,'' ECB council member Klaus Liebscher said in Basel, where he attended a meeting at the Bank for International Settlements. At the same time, oil has ``an influence on the short-term inflation developments, and one shouldn't underestimate it in future monetary policy decisions,'' he said.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: www.centralbanking.com/subscriptions
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Monetary Policy
UK will not hit 2% inflation target over long term – BoE’s Mann
MPC member says sluggish productivity growth is also acting as ‘speed limit’ for economy
BoE’s Taylor emphasises role of history in policy-making
MPC member says central banks should focus on recurring themes but avoid making crude analogies
Sama’s Al-Sayari on financial resilience and the future of the riyal
The Saudi Central Bank governor speaks with Christopher Jeffery about the Middle East conflict, the transformation of the Saudi economy, improving prudential oversight and contingency planning, and the development of the fintech and tokenised ecosystem
Icelandic governor issues call to moderate wage demands
Central bank chief says country’s persistently high inflation can only be tackled through collective effort
Peru holds rates as inflation breaches target range
BCRP says impact of supply shocks, both domestic and international, will ‘gradually dissipate’
IMF’s Georgieva sees value in ‘waiting and watching’
Central banks should ‘step in firmly with rate hikes’ if expectations de-anchor, MD says
Kenya ends easing cycle with rates hold
Central bank adopts wait-and-see approach amid uncertainty over Iran conflict
BoT likely to hike rates if others do, says assistant governor
Don Nakornthab says Thailand’s low inflation means tightening would also come later than elsewhere